CMM Cable Rep., Inc. v. Ocean Coast Properties, Inc.

888 F. Supp. 192, 36 U.S.P.Q. 2d (BNA) 1485, 1995 U.S. Dist. LEXIS 8107, 1995 WL 349033
District Court, D. Maine·Decided June 1, 1995·No. Civ. 94-290-P-H·Published·Cited by 13 cases

Opinion

AMENDED ORDER ON DEFENDANT’S MOTION FOR SUMMARY JUDGMENT AND MOTION TO EXCLUDE PLAINTIFF’S EXPERT

HORNBY, District Judge.

CMM Cable Rep., Inc. (“CMM”) has sued Ocean Coast Properties, Inc. (radio station WPOR), several of WPOR’s executives, and its graphic design consultant for federal copyright, trademark, and trade dress infringement and certain related state law claims. The defendants, whom I shall refer to collectively as “WPOR,” 1 have moved for summary judgment on all counts. 2 I now Grant summary judgment to the defendants on Count II (trademark infringement), Count III (federal unfair competition — trademark infringement), and Counts IV, V, VI, and VII (the state law claims). As for Count I (copyright infringement), I Grant summary judgment on all aspects of the claim except for infringement of CMM’s “KIX Paycheck Payoff’ brochure, as to which summary judgment is Denied. The motion by WPOR to exclude CMM’s expert witness, Creighton Hoffman, is Granted in part and Denied in part. Since this action is bound to affect all the other pending disputes between the parties, the clerk shall endorse them as “no action necessary” and the lawyers shall notify the court no less than two (2) business days before trial what, if any, additional rulings are necessary.

Statement of Facts 3

The facts before me on the summary judgment record, viewed most favorably to CMM, *195 are as follows. CMM develops and markets promotional campaigns for radio stations to increase and preserve listenership. C ¶ 9. CMM markets its promotions to radio stations nationally, using promotional materials and informational brochures that bear copyright and trademark notifications. C ¶ 11. CMM’s promotions are only effective if sold to a single radio station in a particular market area; such “market-exclusivity” has been CMM’s practice. C ¶ 10. CMM’s customers are radio stations, who spend approximately $30,000 to engage CMM’s services to run a promotion of the type involved here. DS, PS ¶ 20.

Two of CMM’s radio promotions are called “Payroll Payoff’ and “Paycheck Payoff.” CMM registered these names as service-marks in 1991. C ¶¶ 36-37; DS ¶ 26. The promotions have been marketed to and purchased by numerous radio stations in the United States on a market-exclusive basis. C ¶ 13. Payroll Payoff and Paycheck Payoff radio promotions entice a listener to listen to the station and phone in if her name is selected and read on the air. If she is successful, she will go “on the payroll” at the station and earn an “hourly wage.” Listeners enter their names for the contest by returning the reply card on promotional flyers. C ¶ 17. One name is read on the air each hour during certain pre-announced time periods. C ¶ 15. If the named listener does not call within the time limit, the previous successful caller stays “on the payroll” and continues to be paid until replaced by a named listener who does call in time. C ¶ 16. All contestants who successfully go “on the payroll” are eligible for a grand prize drawing at the end of the promotion period. DSS ¶ 4.

CMM owns registered copyrights for its promotional materials, informational brochures, and incorporated artwork and has continuously provided copyright notice on such materials. C ¶ 18. Radio contest promotions like these have certain standard, inherent characteristics, including (1) inviting a potential listener to enter the contest, (2) requiring the contestant to listen to the station to determine the right moment to participate, and (3) requiring the contestant to telephone the station at that time. DS, PS ¶3. CMM’s principal, Nancy Izor, “borrowed” the idea for these payroll promotions from an earlier radio promotion she heard called “Working Women’s Wednesday,” in which female listeners called in on Wednesday to be placed on the radio station’s “payroll” to earn an “hourly wage.” DS, PS ¶ 4. Under CMM’s version, the promotion runs all week, includes men and women, and involves supporting “printed collateral” materials. PS ¶ 4.

In the spring of 1994, WPOR began considering an on-air promotional game to bolster its Fall 1994 Arbitron listenership ratings. DS ¶ 5. WPOR contacted CMM in the summer of 1994 to inquire about running one of CMM’s payroll promotions. DS ¶ 6. At that time, WPOR had in its possession one of CMM’s Paycheck Payoff brochures. DS ¶ 6. Following its practice of market-exclusivity, CMM declined to license a payroll promotion to WPOR because CMM was negotiating a contract to produce promotions for one of WPOR’s competitors, WMGX. DS ¶6; C ¶ 21. (Use of a payroll promotion by a competitor such as WPOR would make it highly unlikely that WMGX would purchase such a promotion from CMM. C ¶21.) CMM informed WPOR of its copyrights and trademarks for its payroll promotions. C ¶ 21.

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CMM Cable Rep., Inc. v. Ocean Coast Properties, Inc., 888 F. Supp. 192, 36 U.S.P.Q. 2d (BNA) 1485, 1995 U.S. Dist. LEXIS 8107, 1995 WL 349033 (D. Me. 1995).

888 F. Supp. 192 (CMM Cable Rep., Inc. v. Ocean Coast Properties, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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